Boscov’s Files Bankruptcy
Reading, Pa. Boscov’s Inc. filed for Chapter 11 bankruptcy protection on Monday. The family-owned company operates 49 department stores in the Mid-Atlantic region.
Boscov’s and seven affiliates filed for protection from creditors with the U.S. bankruptcy court in Delaware. It had $538 million of assets and $479 million of liabilities as of May 3, a court filing shows.
Michael Hughes, a Boscov’s executive VP, said in a court filing the company plans to close 10 unprofitable stores and is exploring a possible sale to a third party.
He said Boscov’s was hurt because as the housing market collapsed, skyrocketing energy and gas prices and higher food costs caused consumers to spend less on discretionary items. Hughes also said tighter credit market conditions have caused many vendors to tighten credit terms.
Hughes said Boscov’s has had productive talks with creditors and intends to emerge from bankruptcy as soon as the first quarter of 2009.
In a separate filing, Boscov’s said it plans to arrange up to $250 million of financing to keep operating, with Bank of America NA as administrative agent. It said it also retained Lehman Bros. Inc. to help it obtain new capital.
Boscov’s Chapter 11 filing is the latest in a series of bankruptcy filings by chain retailers. Last week, Mervyn’s took a similar action.
Jewel-Osco launches pharmacy loyalty program
MELROSE PARK, Ill. Supervalu-owned Jewel-Osco has launched Prescription Plus, a new pharmacy loyalty program which will reward frequent pharmacy customers with special discounts on future grocery purchases.
The program awards customers a 10% discount coupon after every five prescriptions filled at the pharmacy when using their Jewel-Osco Preferred Card. New, transferred, and refilled medication orders count toward earning the valuable discount which can be redeemed at the grocery checkout.
“The Prescription Plus program is Jewel-Osco Pharmacy’s way of responding to the tough economic challenges many of our customers face today,” said Tom Rousonelos, vp of Osco pharmacy operations. “Jewel-Osco aims to offer the most value-added pharmacy experience available.”
Talbots names public relations vp
HINGHAM, Mass. Talbots announced the appointment of Meredith Paley as vp of public relations for the Talbots brand, responsible for directing its fashion public relations initiatives.
Paley most recently served as group vp of public relations and public affairs at Kenneth Cole Productions, a role she held for the past seven years.
Paley commented, “I am very excited to join Talbots, as I have long admired its strong heritage and loyal customer base. I look forward to working with the marketing and creative teams to build on this classic brand.”